NOPAT — Net Operating Profit After Tax
Definition: Operating profit adjusted for taxes but before financing costs. NOPAT isolates how well the core business performs independent of its capital structure.
Example
In board meetings, you'll often hear something like: "Let's pull the latest NOPAT numbers before we make a call" — shorthand for net operating profit after tax.
When you'll hear it
NOPAT shows up most often in board meetings, quarterly business reviews, and strategy off-sites. When someone uses it, they're usually referring to net operating profit after tax — and they expect the room to already know what that means.
FAQs
What does NOPAT stand for?
NOPAT stands for Net Operating Profit After Tax.
What does NOPAT mean in business and finance?
Operating profit adjusted for taxes but before financing costs. NOPAT isolates how well the core business performs independent of its capital structure.
Where will I hear NOPAT used at work?
NOPAT comes up most often in board meetings, quarterly business reviews, and strategy off-sites. It's used as shorthand for net operating profit after tax, so people assume you already know the term.